How Do I File for Bankruptcy in South Carolina?
All of South Carolina is served by a single bankruptcy court that has three divisional offices interspersed across the state. Bankruptcy is a federal process, but each state has local rules that control how to file and where. Federal law requires credit counseling prior to filing and sets the qualifications for Chapter 7 bankruptcy.
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Instructions
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Qualify for Chapter 7 in South Carolina. The means test used to determine eligibility for Chapter 7 bankruptcy is based on median family income. In 2010, the median income for a single earner was $39,191. If your modified gross income is less than this amount, you automatically qualify. The income level is higher for households of two or more. If you earn more than the median income in South Carolina for your household size, you can still qualify for Chapter 7 if your disposable income after national and local expense deductions is insufficient to pay a significant portion of your dischargeable debt.
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Get credit counseling. Before you can actually file for bankruptcy, the law requires you receive credit counseling from an approved agency. The U.S. Trustee's website maintains a list of approved agencies. Credit counseling must occur within 180 prior to filing. The counselor can help you determine whether you qualify for Chapter 7, but cannot give legal advice.
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Download bankruptcy forms. The official bankruptcy forms can be downloaded from the U.S. Courts website linked in the Resources section. Several forms are required to initiate a bankruptcy case, in addition to the Voluntary Petition (B1). Local rules require that all necessary schedules and additional forms be filed within 14 days of the petition. The case matrix, which includes the names and addresses of all creditors and their counsel, must be filed with the petition.
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Locate divisional courthouse. The Bankruptcy District of South Carolina has three divisional courthouses, with each county in the state assigned to one of the three. The Charleston division serves the southeast and coastal counties from Horry to Allendale. The Greenville/Spartanburg division receives cases filed by residents of the northwest counties from McCormick to York and north. The Columbia division serves the 22 counties in between.
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File and pay fees. Once you've completed the bankruptcy forms that pertain to your case and located the appropriate divisional courthouse, you can file your forms in person with the clerk of court. As of 2010, a fee of $299 is due at the time of filing. Alternatively, you can apply for a waiver or permission to pay in installments, in which case only $89 is due at the time of filing.
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Tips & Warnings
Filing for bankruptcy will be time consuming and challenging, and failure to file all the necessary forms or to fill them out correctly will likely result in your case being dismissed. If you cannot afford an attorney, seek assistance from free library and other legal self help sources before filing.
References
Resources
- Photo Credit South Carolina state contour against blurred USA flag image by Stasys Eidiejus from Fotolia.com
